Profit-Maximizing Level for Mini-Z Question 2

Overview Discussion of Profit-Maximizing Level Show Calculations Conclusion Discussion of Profit-Maximizing Level Show Calculations Conclusion

Discussion of Profit-Maximizing Level Question 2: At the profit-maximizing level, what is the relationship between marginal cost, marginal revenue, price, and average cost for firms in competitive and oligopolistic industries?   The CFO has provided the following information to you: fixed costs for the MiniZ are $2.75 million variable cost per unit is $200 She wants you to analyze the fixed and variable costs, optimal level of production, and profit for the MiniZ component. Question 2: At the profit-maximizing level, what is the relationship between marginal cost, marginal revenue, price, and average cost for firms in competitive and oligopolistic industries?   The CFO has provided the following information to you: fixed costs for the MiniZ are $2.75 million variable cost per unit is $200 She wants you to analyze the fixed and variable costs, optimal level of production, and profit for the MiniZ component.

Calculations Profit-maximizing level, relationship = marginal cost, marginal revenue, price, and average cost? Fixed Costs for Mini-Z $2,700,000.00 Variable Cost Per Unit $200.00 Calculations Below: Analyze the fixed and variable costs $2,700,000.00 divided by $200.00 equals $13,500.00 Average Variable cost equals $13,500.00 Optimal Level of Production is $13,500.00 times two $27,000.00 Profit for the Mini-Z component (Cost-Profit-Volume) Analysis $2,700,000.00 times $200.00 $540,000,000.00

Conclusion This presentation has discussed the profit-maximizing levels for the Mini-Z component. This presentation has discussed the profit-maximizing levels for the Mini-Z component.